The Facebook Saga

Facebook hasn’t had the happiest time of it recently. What’s recent is, of course, subjective, as the internet giant went public in one of the biggest IPO’s in history on May 17th, just under two weeks ago. Initially valued at $38 a share, it has since dropped to just under $32 (as of May 29th). Lawsuits, public outcries and cynical told-you-so’s were quick to follow.

Hype aside, it’s time to ask some important questions about the company. In his article, Ross Douthat argues that a business model like Facebook’s was never going to be as lucrative as it was popular. While it takes the odd cheap-shot (“..Mark Zuckerberg’s social networking site has always struck me as one of the most noxious, dependent for its success on the darker aspects of online life..”) it makes a valid point. The access to consumer information is one of the most important commodities it sells, which is why it was valued so highly in the first place. Once the dust settles, it remains to be seen whether that’s something it can truly cash in on (of course, there are always other ways to make money off Facebook). Like with Google, the company it’s most compared to, the social networking site is actively trying to expand the variety of services it provides, and there is reportedly a Facebook phone in the works as well. Personally, with the resources at its disposal, I expect the company to weather this initial storm successfully. What its popularity says about society is another matter entirely.